Yamaha Announces Closing of Overseas Guitar Manufacturing Subsidiary in Taiwan |
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At its meeting of September 20, 2006, the Board of Directors of Yamaha Corporation (Yamaha, the Company) decided to dissolve Kaohsiung Yamaha Co., Ltd., (Kaohsiung Yamaha, located in Kaohsiung, Taiwan), a subsidiary manufacturing guitars in Taiwan. Production at the subsidiary will be suspended at the end of January 2007, and, following the suspension of all operations at the end of March 2007, the subsidiary is scheduled to be dissolved in 2008.
In 1970, the Company established the subsidiary Kaohsiung Yamaha in an export processing zone in Taiwan for the production of guitars and other items. Subsequently, along with development of Yamaha's business activities, Kaohsiung Yamaha expanded into the production of sports-related products, professional audio equipment for commercial use, and other products. Currently, Kaohsiung Yamaha concentrates on guitar production.
To strengthen the competitiveness of its international manufacturing network for musical instruments and in view of present and foreseeable developments, Yamaha decided to dissolve Kaohsiung Yamaha, reflecting the judgment of management that Kaohsiung Yamaha has completed its mission. Going forward, plans call for increasing guitar production at Hangzhou Yamaha as well as at a local subsidiary in Indonesia Yamaha Music Manufacturing Indonesia (YMMI).
The effect of this decision on Yamaha's consolidated financial results for FY2007.3, including adjustments related to payment of corporate taxes, will not be material.
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| Outline of Closure of Kaohsiung Yamaha |
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| 1. Outline of the Company |
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Company name |
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Kaohsiung Yamaha Co., Ltd. (Kaohsiung Yamaha, established in 1970) |
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Location |
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Kaohsiung, Taiwan
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President |
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Junji Tomita, President |
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Capital |
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NT$465 million (Wholly owned by Yamaha Corporation) |
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Lines of business |
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Guitar production |
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Number of employees |
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370 (including 2 representatives seconded from Japan) |
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Sales |
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NT$933 million (For the year ended March 31, 2006) |
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| 2. Schedule for Closure |
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Stoppage of production |
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Scheduled for January 31, 2007 |
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Cessation of other
business operations |
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Scheduled for March 31, 2007 |
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Full liquidation |
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Scheduled for 2008 |
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| 3. Matters Related to Closure |
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Employees |
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Scheduled to be dismissed |
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Closure costs |
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Scheduled to be approximately NT$477 million |
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For further information, please contact
Yamaha Corporation
Public & Investor Relations Group,
Public Relations Division
Mr. Mike Tanaka
TEL. +81-3-5488-6601
FAX. +81-3-5488-5060
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